ECB Prepares for Legal Challenges to Bond-Buying Plan

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By Trey Thoelcke Published
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ECB logoGerman newspaper Bild said today that the European Central Bank and the Bundesbank have in-house lawyers checking on the legality of the ECB’s new bond-buying program. They are investigating both what proportions the program would have to take on and how long it would have to last for it to breach EU treaties, in order to prepare in case the matter is referred to the European Court of Justice.

The bond-buying plan is intended to lower the borrowing costs of eurozone nations such as Spain and Italy. But the program has stirred anxiety in Germany, where some people accuse the ECB of reaching beyond its mandate and potentially exposing taxpayers to billions of euros in risky debt.

ECB President Mario Draghi said earlier this month that the central bank was ready to purchase unlimited amounts of bonds issued by eurozone member states, provided they made a formal request for aid and adhered to strict domestic policy conditions. Jens Weidmann, the Bundesbank chief, was the only dissenting voice in the ECB’s decision.

Photo of Trey Thoelcke
About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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